Regular Session
Government Affairs & Regulatory Compliance Analysis
SB506 fundamentally shifts the balance of power in local governance by preventing Home-Rule Cities from using misleading ballot language or conflicting measures to defeat business-initiated petitions. The law establishes a strict administrative review process via the Secretary of State (SOS) and introduces fee-shifting provisions that allow private entities to recover legal costs when challenging non-compliant municipal ballot language.
Sen. Paul Bettencourt·Senate Bill·Regular Session
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Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
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This bill's path through the Texas Legislature
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Common questions about SB506
SB506 fundamentally shifts the balance of power in local governance by preventing Home-Rule Cities from using misleading ballot language or conflicting measures to defeat business-initiated petitions. The law establishes a strict administrative review process via the Secretary of State (SOS) and introduces fee-shifting provisions that allow private entities to recover legal costs when challenging non-compliant municipal ballot language.
SB506 was authored by Texas Senator Paul Bettencourt during the Regular Session.
SB506 was signed into law by Governor Greg Abbott on June 20, 2025.
SB506 is enforced by Texas Civil Courts and Texas Secretary of State.
The regulatory priority for SB506 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB506 is estimated as "medium". This may vary based on industry and implementation requirements.
SB506 addresses topics including city government, city government--general, elections, elections--initiative, referendum & recall and secretary of state.
Key dates for SB506: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
SB506 establishes the following penalties: civil penalty of Reasonable attorney's fees, expenses, and court costs for City governing body losing a mandamus action for failing to submit ballot language that is definite, certain, and facially neutral.; administrative penalty of Mandatory oversight (4-year duration) for A final court judgment finding that a city drafted a misleading ballot proposition triggers a requirement to submit ALL propositions to the Secretary of State for approval for the next four years.; administrative penalty of Voidance of Measure for A political subdivision proposing a measure that conflicts with or invalidates a petition-initiated measure within 180 days of receiving said petition.. Consult with legal counsel for specific applicability to your situation.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
